In the face of impending tax issues linked to UK’s decision to exit EU, Panasonic will move its headquarters from UK to Amsterdam. This move will take place in October.
Panasonic’s decision is driven by the belief that Japan may think of UK as a tax haven if it slashes corporate tax rates to get more business. If Panasonic pays less tax in the UK, it could attract a bigger tax liability in Japan.
Panasonic had been planning this shift in headquarters since past 15 months due to Brexit related issues such as free movement of goods and people. A statement has been issued by Panasonic Europe confirming transfer of its regional citadel from Bracknell, UK to Amsterdam from October 1.
Similar to Panasonic’s decision to shift its headquarters, many Japanese financial firms such as Nomura, Sumitomo Mitsui and Daiwa have already announced that they will cease to maintain their EU headquarters in the UK.